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Viper Energy Partners LP, a Subsidiary of Diamondback Energy, Inc., Provides Second Quarter 2020 Operational Update
SECOND QUARTER 2020 UPDATE
- Q2 2020 average production of 14,453 bo/d (24,508 boe/d)
- Q2 2020 hedged realized prices of
$22.39 per barrel of oil,$7.69 per barrel of natural gas liquids and ($1.01 ) per Mcf of natural gas, resulting in a total equivalent price of$13.60 per boe. Viper realized total hedging losses of($2.1) million - Q2 2020 unhedged realized prices of
$21.00 per barrel of oil,$7.69 per barrel of natural gas liquids and$0.46 per Mcf of natural gas, resulting in a total equivalent price of$14.55 per boe
“Viper had limited completion activity on our acreage in the second quarter as operators reacted quickly to oil price volatility by cutting capital expenditures, ceasing completions and, in some cases, curtailing existing production. However, as commodity prices have improved in recent months, nearly all our curtailed production has come back online. Most importantly for Viper, Diamondback has recently brought three completion crews back to work after taking an almost three-month break from all completion activity in the second quarter of 2020. Looking toward the second half of 2020, Diamondback expects to focus its completion activity on areas where Viper has significant mineral ownership, which will allow Viper’s oil production to grow in the back half of the year from the second quarter lows. This activity should lead to strong fourth quarter 2020 exit rate production that we believe will continue throughout 2021 as Diamondback’s plans contemplate completing wells where Viper owns a significant royalty interest,” stated
DERIVATIVES UPDATE
Below is Viper’s hedge position as of
| Crude Oil (Bbls/day, $/Bbl) | |||||||||||
| Q3 2020 | Q4 2020 | FY 2021 | |||||||||
| Costless Collars - WTI ( |
14,000 | 14,000 | 10,000 | ||||||||
| Floor Price ($/Bbl) | $ | 28.86 | $ | 28.86 | $ | 30.00 | |||||
| Ceiling Price ($/Bbl) | $ | 32.33 | $ | 32.33 | $ | 43.05 | |||||
| Swaps – WTI ( |
1,000 | 1,000 | — | ||||||||
| $ | 27.45 | $ | 27.45 | $ | — | ||||||
| Basis Swaps – WTI (Midland-Cushing) | 4,000 | 4,000 | — | ||||||||
| $ | (2.60) | $ | (2.60) | $ | — | ||||||
| Deferred Premium Call Options - WTI ( |
— | 8,000 | — | ||||||||
| Premium | — | $ | (1.89 | ) | — | ||||||
| Strike Price ($/Bbl) | $ | — | $ | 45.00 | $ | — | |||||
| Natural Gas (Mmbtu/day, $/Mmbtu) | |||||||
| Q3 2020 | Q4 2020 | ||||||
| Natural Gas Basis Swaps – |
25,000 | 25,000 | |||||
| $ | (2.07 | ) | $ | (2.07 | ) | ||
About
Viper is a limited partnership formed by Diamondback to own, acquire and exploit oil and natural gas properties in
About
Diamondback is an independent oil and natural gas company headquartered in
Forward-Looking Statements
This news release contains forward-looking statements within the meaning of the federal securities laws. All statements, other than historical facts, that address activities that Viper assumes, plans, expects, believes, intends or anticipates (and other similar expressions) will, should or may occur in the future are forward-looking statements. The forward-looking statements are based on management’s current beliefs, based on currently available information, as to the outcome and timing of future events, including specifically the statements regarding Diamondback’s plans for the acreage discussed above, development activity by other operators, commodity prices, effects of hedging arrangements and the impact of the ongoing COVID-19 pandemic. These forward-looking statements involve certain risks and uncertainties that could cause the results to differ materially from those expected by the management of Viper. Information concerning these risks and other factors can be found in Viper’s filings with the
Investor Contact:
+1 432.221.7467
alawlis@viperenergy.com
Source: Viper Energy Partners LP
